Why hire in Romania through an EOR

One of the lowest employer costs in the entire EU

Romania's employer social contribution is just 2.25% of gross salary — a single charge (CAM), covering unemployment, occupational health, and the guarantee fund. For normal working conditions, the employer pays no pension contribution at all; the overwhelming majority of the social burden — 35% — sits with the employee instead. Combined with a flat 10% income tax, it's one of the most cost-effective countries in Europe to hire into.

No entity required

Employ staff in Romania without registering a company or filing your own CAM, CAS, and CASS contributions.

Genuinely low employer cost

At 2.25%, Romania's employer contribution is among the lowest in the EU — we pass through the exact figure.

Working-conditions classification checked

Uncommon or special working conditions add employer CAS on top — we confirm which classification applies to the actual role.

Independent advice

We confirm the working-conditions classification before quoting — it's the one thing that can move Romania's usually-low employer rate.

Employer costs at a glance

Romania's headline numbers

2.25%
Employer's entire statutory social contribution (CAM) for normal working conditions — no pension contribution required
35%
Employee social contribution — 25% pension (CAS) plus 10% health insurance (CASS), the overwhelming majority of the total burden
10%
Flat personal income tax — no progressive bands, one of the lowest rates in the EU

Employer costs explained

Why Romania is genuinely cheap to hire into

CAM — 2.25%, and that's essentially it

For a role under normal working conditions, Romania's employer contribution is a single charge — the Work Insurance Contribution (CAM) at 2.25% of gross salary, funding unemployment benefits, occupational health, and guarantee fund obligations. Uniquely among the countries we cover, employers pay no pension contribution at all under normal conditions — that entire cost sits with the employee.

The employee carries the real weight — 35%

Where Romania differs sharply from most systems (and is the near-exact opposite of Sweden, which we also cover) is that the employee's own contribution does almost all the work: 25% for pension insurance (CAS) and 10% for health insurance (CASS), a combined 35% with no ceiling — applied to the entire gross salary regardless of how high it goes.

When the employer rate actually goes up

If the Labour Inspectorate formally classifies a role's working conditions as "uncommon" or "special" — a classification set by inspectorate rules, not chosen by the employer — an additional employer CAS applies: 4% for uncommon conditions, 8% for special ones. Most office, technology, and professional-services roles never trigger this and stay at the base 2.25%.

Employment basics

What's standard for a Romanian employment contract

Employer contribution (CAM)

2.25%, normal conditions

Rises to 4% or 8% only if the role is formally classified as uncommon or special.

Employee contribution

35% (25% CAS + 10% CASS)

No ceiling — applied to the entire gross salary.

Income tax

10% flat

No progressive brackets — the same rate applies at every income level.

Personal deduction

Tapers out above RON 5,000/month

Reduces taxable income for lower earners specifically, plus a fixed per-child deduction.

Before you budget a Romanian hire

Get our free spreadsheet of employer social charges across 150 countries and see how Romania compares.

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Common questions

Hiring in Romania, answered

Why is Romania's employer cost so low?

Romania structures its social contribution system so the employee's own 35% contribution covers pension and health insurance, leaving the employer paying just 2.25% under normal working conditions — a genuine structural feature, not a temporary rate or a loophole.

Does the employer rate ever increase?

Yes, but only if the Labour Inspectorate formally classifies the role's working conditions as uncommon (4% additional employer CAS) or special (8%). Most standard office and professional roles never trigger this and stay at the base 2.25%.

Do I need a Romanian entity to hire someone there?

Not necessarily — you can register directly as a foreign employer and run payroll through a local partner, or use an Employer of Record if you'd rather not register at all. We'll help you work out which fits your situation.

Ready to talk about a Romanian hire?

Tell us the role and we'll give you the real cost and the fastest compliant route — including if that's not us.

Get a Romania quote

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